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I’m a tour guide in Hasidic Williamsburg, and visitors to this community often wonder about the economy. What’s interesting is that on the one hand, the children on Lee Avenue are often dressed to the nines in matching outfits, babies are pushed in designer strollers, and you will not see a homeless person at any street corner. Yet statistically, the community is very poor.I grew up in a satellite community of this sect called Kiryas Joel, and the New York Times tried to delve into this question about my home town. In “A Village with the Numbers, Not the Image of the Poorest Place” the Times writes:“The poorest place in the United States is not a dusty Texas border town, a hollow in Appalachia, a remote Indian reservation or a blighted urban neighborhood. It has no slums or homeless people. No one who lives there is shabbily dressed or has to go hungry. Crime is virtually nonexistent.”Thus the paradox: on paper, the community ranks as very poor. But as with all things data, it does not give a holistic picture of a situation.You will ask: So is the community poor?The community is certainly *not* rich as a whole, but some things to keep in mind is:A factor that creates an unusual type of poverty: Families are large, often very large. I have 14 siblings. These family sizes easily distort family income, by creating a net income after deductions that will easily fall under the poverty line. Yet these families have different cost sets than American families, and one might argue life is cheaper. There are no nannies, expensive mid winter vacations, summer camps, hobbies, pets, second cars (women don’t drive). Large families often operate like efficient machines in which more can be shared.A factor that decreases poverty: There is a lot more “spreading the wealth” in this community than elsewhere. For example, there are some very wealthy people - see the article about $2.5 billion dollars in Brooklyn Real Estate that is owned by Hasidic Williamsburg individuals. These are men who strike it rich and will often then spend and hire within the community. They might, for instance, want to be honored for sponsoring a huge synagogue which will serve the entire community’s needs. Not only that, but the synagogue construction will probably create financial opportunities in the community.3. A factor that increases poverty: Keep in mind that this community espouses a very different concept of education. Women in many schools don’t even graduate with high school diplomas, and as a general rule do not go on to be college educated. Men get even less in secular studies because of their obligation to Torah Studies. As a result, my brothers speak very little English before adulthood, even though they are native New Yorkers. They then find employment within the community and improve their English language and computer skills on the job. My father has some forty years experience working in the secular world and still speaks in a very broken English.4. A factor that decreases poverty: The economy is helped by the community’s special needs. The community needs special food, clothing, education, entertainment in order to be appropriate to its religious teachings. We therefore see a lot of people buying and selling within the community. People also prefer contracting within the community because of trust when working with people “of their own”.5. A factor that decreases poverty: being poor means you qualify for government funding by way of tax refunds, food stamps, Medicaid. I believe this kind of income is not taken into account when calculating the net income in a community, which means the numbers don’t reflect significant income.6. A factor that decreases poverty: Because men don’t go to college, they start their “careers” at about twenty years old, a year or so after they get married. That’s a head start over their secular counterparts. Men are also extremely ambitious - being well off is important to everyone - and work very hard.7. A factor that decreases poverty: men go to the synagogue three times a day. They spend a lot of time together and a lot of the conversation centers around jobs, investment opportunities, good credit cards, etc.8. A factor that increases poverty: Women often stay home with the kids, so there is often only a single income. Talented and bright women often invest all their abilities in running a shmekedige home. While they may sell baked specialties, work on wigs or do other work from home, most bring in a sliver if nothing.9. A factor that makes the narrative oversimplified: Many, many, many people in the community struggle and will readily tell you that the financial situation in the Hasidic community is coming to a head. Many will attribute their financial frustrations to their lack of proper education and job training. I do agree with the problems created by not even speaking English properly, and am myself glad to be giving my son a secular education, but this isn’t the whole story. On the flip side of this incomplete education is a benefit most in the secular world don’t have; a whole community serving as a most extensive, loyal economic network. Keep in mind also that many are struggling in the secular world as well, and there too there are unique challenges; ie - you start out with 40K in debt even if you work during your college years.So is the community poor? I think yes, inasmuch as many communities that aren’t already wealthy are poor these days.Are other Jewish communities better off? Probably. But it depends which ones. As you might see, each community is unique. Each economy is unique.

Investing in MF and equities is a good idea these days since the returns obtained and the tax benefits are generally greater than in investing in mutual funds then investing in traditional avenues such as fixed deposit and PPF.Investing in mutual funds is easy done then said. SEBI who is regulator of financial services industry has already simplified the process. However, most of us are unaware of the process of investing in MF. We have tried to detail out the process in simple manner which can guide a layman investor to start investing in Mutual funds-1. Understand your Profile: There are multiple investment products with different risk and return. When it comes to investing, first step should be to know personal risk profile. Investor should first understand his or her risk profile for investing. Generally higher the age and financial obligations lower the risk profile. However, one can learn risk profiling through various free online tools.(Link to Risk profiling).Knowing the risk profile helps in knowing the products one should not invest in.The below helps understanding the basic categories of profiles and meaning-ConservativeThe primary objective of this class of investors is to protect the capital from loss. Conservative Investors want a stable growth over large returns but without taking any risk on capital. Generally investors in Higher age bracket or with high financial obligations fall into this category.ModerateThese kinds of investors look for capital growth along with decent protection of capital. Investors who lie in this class can tolerate some fluctuations in short term in the value of their investments in the anticipation of higher returns, in long term.Moderately aggressiveThe primary objective of this class of investors is capital growth with calculated risk in capital. Moderately aggressive Investors are able to accept fluctuations if long term expected result is positive and can deliver return higher than fixed deposits.AggressiveAggressive investors can take high risk for super natural returns. These investors can meet their financial obligations in spite of losses in their investments .2. Know your Financial Goals: Every individual has certain financial goals in life. Some gaols are mandatory like retirement expenses, House purchase, kid’s education etc. whereas other can be aspirational one like buying a luxury car, overseas vacation etc.Each Goal has some value and one has the choice to invest a lump sum amount or open regular savings account for meeting the goal.a) List down all the financial goals of lifeb) Knowing the amount of money required to meet those goalsc) Defining how much money should one invest today to achieve those goals3. SIP or Lump Sum- Knowing the value of goals, one can know how much money one is require to save for meeting those goals.Suppose one needs Rs 50 lacs after 25 years for kid’s marriage, one has to invest Rs 5.80 lacs with expected return of 9%. However, one can start investing in SIP with just Rs 5000 investment per month for 25 years and meet the goal.Depending on the financial capability one can take this decision.4. Choose the Category of Funds: There are multiple kinds of funds- equity funds, Balanced funds, Income funds, Sectoral funds etc. Each fund is not right for each investor. Now, you have already identified the risk appetite and goal preference, the next important step is to choose the right product.5. Right Mutual fund Scheme- There are 100s of equity funds in India. Once you know that you have to invest in equity funds, now the next step is to identify the right scheme in it. One can take help of advisor for the same or make an effort to do it on his own.The following steps will lead to selection of right type of product:Expense Ratio: The Expense ratio is declared as a percentage of basic overall business expenses of mutual fund company ( Known as Asset management company- AMC) necessary to keep the fund operational , over the total investment of mutual fund ( Known as asset under management- AUM ). It tells how much charges customer pays to the mutual fund company to get the money managed by them. This expense ratio change for each mutual fund company. It varies for varied mutual fund categories.Historical Performance: Historical performance aids in anticipating the future performance of the fund and hence is looked in during the selection process. The schemes usually with a track record of consistent out-performance vis-a-vis their benchmarks ( usually BSE SENSEX and NSE NIFTY indices in case of Equity Funds), are considered to be good for future too.Mutual fund Scheme Age - Markets have lots of cycles- Bull or bear or stagnant. Funds that perform in all cycles are generally better than others. But cycles come generally in 5-8 year period of time. So it is advised that schemes with 5-8 years of history are generally better than others.The size of the mutual fund corpus- Investors generally invest in the schemes which are good in all aspects- Performance, Ratios, Fundamentals, etc. So one easiest way to judge a mutual fund is to know its corpus and compared with the competition. In case it is on the high side, it can denote that investors trust the particular fund and one can invest. One can easily track the past return from Mutual fund Company’s website or newspapers. However, it is advised to check all above 4 things before investing in mutual funds.6. Start transacting through online mode or offline mode:Benefits of online investing1. Single place for scheme info, buy/sell, NAV check, portfolio track, online, anytime, anywhere.2. Hassle free, real-time buy/sell -no filling forms every time3. Easy enabling of Systematic Investment Plans (SIPs)4. You can also transfer in your holdings from other accounts5. Transparent process7. Sleep: If you have invested in mutual funds with proper plan, you should not track them on a regular basis. Mutual funds should be brought for long term investing and not for timing the market. Therefore, one should forget about the mutual funds investment and not worry about them in the near future after bringing them.8. Monitor: It is advisable that one should try to monitor MF account once in every six months. It is said so because by doing so one can know about the status of the funds accumulated through mutual fund and how much more time will be needed to accumulate enough funds to meet the desired goals.

Thanks for the A2A. To gauge their performance, angels need to track investment-by-investment data in addition to round-by-round level data since different rounds in each company can have very different IRRs. To report with that level of detail, you have to have the underlying data points. To cover this topic thoroughly, I am going to use the following organization for this answerRequired Data PointsFinding and Collecting the DataTools/Templates for Storing and AnalyzingKey Metrics to Focus OnBefore we jump in, here is an example of the kind of chart you are trying to get yourself in a position to build:1. Required Data PointsTo be able to track performance of a priced equity investment on a round-by-round basis, you are going to need to gather and track the following key data points:Date you made the investment (it may be easier to use the date the round closed, but it is more accurate from an IRR perspective to track from when you took the money out of the fund and committed it to the company)The exact amount of investment into the round, andCapitalization details such as the pre-money and post-money valuation so that you can accurately track the price paid per share.To be able to track performance of a convertible debt investment on a round-by-round basis, you are going to need to gather and track the following key data points:Date you made the investment (since convertible note rounds tend not to have defined closing dates)The exact amount of investment into the roundThe cap on your conversion priceWhether there is any discount on that conversion priceWhether there is any interest rate being paid, and if so, what type (simple, cumulative, non-cumulative) and how frequently it is being calculated (daily monthly, quarterly, annually), andWhether there are any warrants or other derivatives being issued as part of the deal.You are going to need to remember to convert your notes into stock holdings at the appropriate per share price when a qualifying round occurs and your debt converts to equity. You will also need to keep separate track of any interest earned for tax purposes, and if some note holders received warrants and others did not, you are going to have to watch out for imputed income for the delta between what you paid and what others paid. The value of the warrants is typically viewed as taxable imputed income by the IRS.2. Finding and Collecting the DataFinding all this data and recording it accurately can be a little bit of work, but it is as easy as it is ever going to get right after you write the check. You have all the final drafts of the documents handy. You have the deal particulars top of mind. And you likely have contact details and telephone numbers for people to ask if you have questions right near the top of your inbox. If you let time go by, you only succeed in turning a small chore into a big pain in the neck as you struggle to collect all the relevant information and reconstruct the deal from the scattered historical pieces.Finding this data amidst all the deal documents is not that hard once you know where to look. With a little practice you can learn pretty quickly how to move around in the documents and find and record what you need to have in your records. If you have trouble figuring out where to find things, you can see our guides to convertible note documents and preferred stock documents.A word of caution for those who might be tempted by shortcuts when gathering this data. This is a case where you really need to go back to the primary documents. You cannot pull this information out of the termsheet. Termsheets lack sufficient detail and the final deal documents often differ slightly from the termsheet, as things like the exact size of the round change or price per share change as the deal is finalized. And even if you do go back to the official deal documents, it is an extremely good practice to ask the company for a post-closing cap table. Not only is reviewing the cap table a really good way to cross-check your arithmetic on things like your ownership percentage, older cap tables tucked away can be a very handy historical record for questions down the road. This is a habit you really should get into for every round - even rounds in which you do not participate. A series of historical cap tables can be a vital tool in double-checking your payout in the event of an exit or trouble-shooting discrepancies in later rounds.3. Tools/Templates For Storing and AnalyzingOf course, once you have collected all this data, you need somewhere to put it. You can stick it in flat files like notes or spreadsheets, but portfolio management tools such as Seraf (disclosure: I’ve helped build Seraf and own some of it) can be a much better solution for three reasons:They are designed to walk you through what you need - a place for everything and everything in its placeTools like Seraf continuously leverage the data you enter so that you are running real-time performance reporting at all times.You can make your reports at the push of a button instead of having to pull the data together and calculate performance each quarter.4. Key Metrics to Focus OnTracking your investment performance can be thought of like an onion or a Russian nesting doll: from the center outward, you are addressing increasingly broad contexts:At the center, there is the question of how a particular investment in a particular round performedThen, how that company has performedThen, how your overall portfolio has performedThen, how that portfolio compares to similar portfolios of the same vintageAnd finally, how those portfolio returns compare to broader market averages - the returns you could have achieved in other less risky more liquid investments.Here is an example of a chart that automatically tracks how you are doing compared to industry benchmarks:For your day-to-day, quarter-to-quarter tracking, you are going to focus on changes to the inner circles: new rounds, new companies, updated valuations and fund performance since the last report. But the reality of the early stage investing space is that your micro-tracking is always happening in a macro context, and to see how you are really doing, you need to also look at the bigger picture.Here are some common metrics that a portfolio management tool like Seraf (or one you construct yourself), should help you track and calculate:Table showing all your holdingsA place to keep all your portfolio company reports and updatesYour portfolio’s cost basis and current valuationYour current total portfolio value to paid- in capital (known as “TVPI”)The change in value over the past quarter (qtr) or year to date (ytd)Your IRR if liquidated at current valuationYour residual value to paid- In capital (RVPI)Your total cash returnedThe cash you have pulled out, i.e. distributed to paid- in capital (DPI)The sum of your current valuation + cash returnedYour overall combined exit multiple (i.e. returns from exits divided by amount put into those exited companies)Your cumulative IRR from all exits to dateChanges in the portfolio holdings during quarter: New Companies, New Rounds, Amount Invested, Amount ReturnedPortion of portfolio’s value per companyTransactions during quarterInvestments and returns per each year for annual tracking purposesInvestments and returns with returns matched to original year of investmentHere is an example chart showing what it looks like to match investments in one year against the returns generated from those investments, plus the value of the remaining holdings from that year:This long list of metrics is obviously a ton to calculate manually, so a tool can help because it does all the processing in the background in real time so that when you go to look at performance, you spend your time looking at outcomes, not trying to calculate metrics.Hope that helps. Best of luck.